This article explains how clients can transition a Direct Employee Payroll to a new worker type.
A Direct Employee - Payroll is an employee hired and paid through Deel's Global Payroll service. These employees are employed directly by the company utilizing this service
Clients can transition a Direct Employee - Payroll to EOR, PEO, and Contractor.
- An EOR employee is legally employed by the EOR organization (Deel), which acts as the official employer. The EOR handles all legal, compliance, and administrative aspects of the employment relationship on behalf of the client company.
- A Contractor: a self-employed professional who offers their services to clients on a project-based or fixed-term basis.
- A PEO employee is someone who is employed under a co-employment relationship between their organization and a Professional Employer Organization (PEO). In this case, Deel acts as the PEO.
Transitioning a Direct Employee - Payroll to Another Worker Type
✅ Step 1 - Select the worker to be transitioned
Select the People icon from the homepage, followed by the All People tab, and click on the contractor’s name. Next, click on the three vertical dots and select Change Worker Type.
Employees must have a valid personal address in their HRIS profile to complete the transition. Missing information will prevent the process from being finalized.
✅ Step 2 - Start the Transition
Select the worker type and click Next to begin transitioning.
✅ Step 3 - Provide the worker’s Information
Clients will be asked to provide:
- Employee’s personal details – This information will be pre-filled using data from the existing contract. Please review and ensure it's correct.
- Job details – Will have to be filled with the required information.
- Compensation and dates have also been pre-filled with information from the previous contract, but they can be edited.
- Compliance documents - if applicable
By clicking Create Contract, the worker type change will be initiated. The worker will then be notified to complete the necessary onboarding steps and automatically invited via email to access the updated details in the Deel Employee App.
Specific Requirements and Differences for Each Worker Type
When Transitioning to EOR
Once all details are provided by the employee and agreements signed, click Complete worker type change from the worker's contract overview.
Onboarding & Offboarding
After the contract is created, the employee will receive an invitation to complete the onboarding process. After the contract is active, the old HRIS entry will be marked as inactive.
When Transitioning to PEO
To transition an employee to PEO, the client must have an entity with PEO activated.
Onboarding & Offboarding
After the new contract is created, the employee needs to complete the onboarding process to compliantly receive their salary. The employee’s profile will automatically update from Direct Employee to PEO employee one day before the PEO start date.
Transitioning to Contractor
If the contractor has more than one active contract, the client must select which contracts will be transitioned to the new worker type.
Onboarding & Offboarding
Once the contract is created, the contractor will receive an invitation to complete the onboarding process. After the contract is active, the old HRIS entry will be marked as inactive.